Despite the underperformance of fixed income we discuss in this Spotlight guide why the value proposition of the asset class hasn't gone away. In particular we review how the RLAM management team use existing, proven funds to actively manage consistent monthly income streams and adapt the portfolio to changing interest rate and credit market factors.

Within this guide, you will find some surprising survey results from FE, a selection of adviser opinions and some Architas views too. We hope this guide will provide you with some food for thought on this burning issue.

ITV helps FTSE recover losses

The FTSE 100 Index recovered some of its earlier losses to close down 7.50 points, or 0.1%, at 6,232 points today, with ITV the biggest riser.

ITV jumped 6.16% to £1.12 on confirmation it is in early stage merger talks with cable group NTL.

SABMiller also rose 3.41% to £10.93 after it reported a 22% rise in half year pre-tax profit to $1.4bn from $1.1bn and said it remained confident for future trading.

On the downside, Royal & Sun Alliance fell 1.95% to £1.50 after it reported a drop in pre-tax profits for the first nine months of the year to £473m compared with £583m a year ago.

The miners were also hit by news of metal prices falling overnight. Rio Tinto dropped 0.94% to £29.62, Xstrata fell 1.88% to £23.54 and Kazakhmys declined 0.64% to £12.34.

Concerns the US Congress will look to cut the price of drugs following the recent mid-term elections took GlaxoSmithKline down 1.28% to £13.86 and AstraZeneca down 2.75% to £30.75.

In the US, the Dow Jones industrial average is down 30.89 points, or 0.25%, at 12,145.65 points, led by a weaker-than-expected reading in a gauge of consumer sentiment and rising crude oil prices.

Drug maker Merck is the biggest drag on the Dow, down 2.1% to $43.42. The pharmaceuticals sector is among areas analysts expect will come under intense legislative scrutiny in the months ahead after Democrats won control of Congress.

Cisco shares have risen $1.74 to $26.83, while shares of Qualcomm have slipped to $35.05 after the company said Japan's antitrust watchdog had notified its Japanese subsidiary of a possible investigation into its licensing and chip business practices in Japan.